Wells Fargo and JP Morgan released third quarter earnings that fell shy of analyst estimates, sparking a sell-off in US banks that weighed on the overall market.
There was little reaction to data showing US consumer confidence rising to its highest in over five years, as concerns grow over the financial performance of the nation’s corporate sector.
The S&P500 (-0.3%) and Nasdaq (-0.2%) recorded slight falls, whilst the Dow inched higher by three points to 13329. European equities fared worse, with the FTSE, German DAX and French CAC retreating at least half a percent each. There wasn’t much cheer for commodities, with gold and most base metals sliding more than one percent. The euro managed a small gain against the US dollar as speculation swirled Spain was nearing a formal request for a bailout.
Elsewhere, the Aussie dollar fell 0.2% to US$1.0231 but has turned higher this morning after weekend data revealed Chinese exports accelerated in September, easing concerns over the state of the economy.
In local economic news, home loans and new motor vehicle sales data will be released at 11:30am, AEDT. Around the region, most eyes will be on Chinese CPI data, which is slated for release at 12:30pm, AEDT.